By 2028, New Brunswick will experience an upward trend that returns its GDP
growth rate to 2008 levels.
OVERVIEW
Problem
New Brunswick’s real GDP growth rate has not been above 2% since 2006, largely due to the 2008 recession.
Cause
The recession in 2008 severely impacted GDP growth for New Brunswick the following year. Then, during the rebuilding process in 2012, the federal government had a tight fiscal year, and only provinces with strong ties to commodity markets were able to sustain growth. Following 2012, however, the province has seen continuous growth.
Importance
New Brunswick regularly having GDP growth rates above 2% would mean that NB is on par with the Canadian average for all provinces. Having higher growth rates results in higher tax revenue and more funding for public services without needing to raise tax rates. A higher GDP also makes prospective businesses more interested in the growing economy of New Brunswick.
Recommendation
For New Brunswick to reach a real GDP growth rate of 2% or more, the province must focus on public and private sector investments, as well as bringing in skilled workers or young people for education who would stay for employment upon graduation to fill the skill shortages which New Brunswick is currently experiencing.